- By ASCO Legal
Lifestyle villages are becoming increasingly popular across New Zealand, especially for Kiwis looking for a vibrant community and low-maintenance living in their retirement years.
But before you sign on the dotted line, it’s important to understand what you’re really agreeing to, starting with your Licence to Occupy (LTO).
An LTO isn’t the same as owning a freehold title. Instead, it gives you the right to live in a unit within the village and to use its facilities, but the unit itself remains owned by the village operator.
And here’s the thing: no two LTOs are the same. The terms can vary significantly from village to village.
Some key points to look out for include:
- Value on sale – How is the resale price of your unit calculated, and how much of that comes back to you (or your estate) when you leave?
- Village fees – What do they cover, and how often are they charged?
- Fee increases – How are fee adjustments determined over time, and is there a cap?
- You don’t own the property – Have you checked out the financial strength of the village operator and how long they are taking to sell?
Because the fine print can have a big impact on your finances and your estate, it’s wise to have your agreement reviewed by a solicitor who specialises in this area.
They’ll ensure you understand the obligations, the costs, and how your rights are protected.
Thinking about making the move? Talk to the team at Asco Legal.
We’ll guide you through the process, explain the details in plain English, and make sure your decision is the right one for your future.
- To contact ASCO Legal, phone 09 308 8070, or see www.ascolegal.co.nz.
